Union Budget 2019: Major Highlights with Important Question for Upcoming Exams, also we highlighted some important terms for the students.
Finance Minister Piyush Goyal presented the Interim Budget 2019-20. It was the last Budget of the Modi Government before the 2019 Lok Sabha elections. ( The Interim Union Budget of India for 2014–2015 was presented by Finance Minister, P.Chidambaram on 17 February 2014, 11 AM public to the citizens of India.)
This year, the government presented the Interim Budget, also known as ‘Vote on Account’ as it is close to the end of its term. An interim budget is usually passed by the Lok Sabha without discussion. This interim budget focuses on rural sector, middle class.
As per the Interim Budget or Vote on Account, the government seeks the approval of Parliament to meet its expenditure for the first four months (January-April) of the fiscal year with no changes in the taxation structure, until a new government takes over and presents a full Budget of the year in July 2019.
Interim Budget 2019 proposed a 10-point vision for 2030
- Next-gen infrastructure
- Digital India
- Pollution free India that drives on electric vehicles
- Expanding rural industrialization
- Clean Rivers with safe drinking water
- Developing the coastline and harnessing the blue economy
- Placing an Indian astronaut in space
- Making India self-sufficient in food, exporting food and organic farming
- Healthy India, distress-free healthcare and comprehensive wellness system
- Maximum Governance
Note: India looks forward to becoming a USD 5 trillion economy in the next five years and a USD 10 trillion economies in the next eight years.
- By 2024, India will have housing for all, free from corruption, communalism, and nepotism. India has become the fastest growing economy
- India has now become the 6th largest economy in the world.
- Inflation has been brought down to 4.1 percent; average inflation stands at 4.6 percent
- The fiscal deficit has been brought down to 3.1 percent.
- The Current Account Deficit has also been brought down.
- India attracted maximum Foreign Direct Investment (FDI) in 2018-19, amounting to USD 239 million. This has been possible through rapid liberalization of FDI policy.
- In the last 5 years (2014-2018), India witnessed structural reforms by introducing the Goods & Services Tax (GST) and other taxation reforms.
Budget 2019 Major highlights in the Banking sector
- A number of measures have been undertaken for clean banking in recent years such as through the Insolvency and Bankruptcy Code (IBC)
- Re-capitalization of PSU banks was done.
- Recently, the Prompt Corrective Action (PCA) restriction was removed from three banks, namely - Bank of India, Maharashtra Bank, and Oriental Bank of Commerce (OBC).
An important economic topic for Exam.
Steps against corruption
- India saw a corruption-free government in recent years through measures such as transparency in operations.
- Transparency was achieved through the Real Estate (Regulation and Development) Act, 2016 (RERA), Benami Transactions (Prohibition) Act, 1988 and Fugitive Economic Offenders Act.
- The government conducted a transparent auction of natural resources such as coal.
Swacch Bharat Mission
- The NDA Government launched a holistic programme ‘Swacch Bharat Mission’ in 2014 which succeeded in changing the mindset of people. The programme has been converted into a movement.
- Under the mission, 98 percent of rural sanitation coverage has been achieved.
- Most of the villages have been declared Open Defecation Free (ODF).
- India will be celebrating the 150th birth anniversary of Mahatma Gandhi in October 2019.
Budget 2019 Major highlights in Rural development
- Rs 60000 crore allocated for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
- 10 percent reservation granted to the economically backward among the general category.
- Rs 19000 crore allocated for Gram Sadak Yojana for construction of more rural roads.
- Over one crore fifty-three lakh houses were constructed in the last five years under the Pradhan Mantri Awas Yojana (PMAY).
- By March 2019, every household will have electricity under the Saubhagya yojana.
Budget 2019 Major highlights in Health Sector
- India launched the world's largest healthcare programme, Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana to provide medical treatment for 50 crore people. As many as 10 lakh people have been benefitted so far under the scheme.
- Many poor people are able to get affordable medicines through the Jan Aushadhi Kendra.
- There are 21 All India Institute of Medical Sciences (AIIMS) functioning currently in India. Of these 21, 14 AIIMS was set up under the present government.
- The 22nd AIIMS will come up in Haryana.
- The government undertook various initiatives to boost farmers’ income. It ensured that the Minimum Support Price (MSP) is at least 50 percent percent of the produce and introduced the pro-farmers policy.
- Rs 750 crore was allocated for the Rashtriya Gokul Mission.
- It announced to set up the ‘Rashtriya Kamdhenu Aayog’ for production and productivity of cows.
- A separate ‘Department of Fisheries’ will be created to boost the fisheries sector.
- 2 percent interest subversion will be given for farmers pursuing animal husbandry and an additional 3 percent interest subversion will be given for those who repay the loan in time.
- For farmers affected by severe natural calamities, interest subversion for the entire period of three percent of loans would be given. An additional three percent subversion will be given if the loan is paid on time.
Pradhan Mantri Kisan Samman Nidhi
Considering that the declining prices of agricultural commodities and food inflation led to reduced returns for farmers, the Government felt the need for structured income support for farmers to procure seeds and labor and introduced a new scheme was for farmers’ welfare.
The Scheme ‘Pradhan Mantri Kisan Samman Nidhi’ will provide assured income to small and marginal farmers. Vulnerable farmers with 2 hectares of land will be given Rs 6000 per year. The amount will be transferred directly into their account in 3 equal installments.
The complete expenditure of Rs 75000 crore for the scheme will be borne by the Union Government. Over 12 crore farmer families will be benefitted under the scheme. It will be implemented with effect from December 2018.
The budget allocated Rs 100000 crore for the agriculture sector (Rs 75000 for scheme + 25000 crore as per revised estimate of current year).
Wages, salaries and pensions
- The membership of Employees' Provident Fund Organisation (EPFO) has gone up by 2 crores in five years.
- In the last five years, all classes of workers saw a 42 percent increase in wages.
- The Seventh Pay Commission recommendations were implemented swiftly.
- The Employee's State Insurance (ESI) cover limit was increased to Rs 21000.
- The minimum pension was also increased to Rs 1000.
Pradhan Mantri Shramyogi Maan Dhan Yojana: Mega pension scheme for unorganized sector
Considering that half of the GDP comes from the unorganized sector, Finance Minister announced the launch of the mega pension scheme for the unorganized sector workers with an income of less than Rs 15,000.
Under the scheme, the workers will be able to earn Rs 3000 after attaining the age of 60 years.
The budget allocates the expenditure of Rs 500 crore for the scheme.
- The government stood up to into manifesto and provided the promised clean fuel for cooking under the Ujwala Yojana. The government has already given 6 crores free LPG connection.
- More than 70 percent of beneficiaries of Pradhan Mantri Mudra Yojana are women.
- Various scheme of the government has led to the youth development in the country. These schemes are Pradhan Mantri Mudra Yojana, Startup India, and Stand Up India.
- The 16.53 crore loans have been disbursed under Pradhan Mantri Mudra Yojana and Rs 7.23 lakh crore have been disbursed through the scheme.
- A two percent interest subvention for MSMEs with loans up to Rs 1 crore is announced.
- The job seeker has become job giver.
- 25 percent of sourcing for government projects will be now from the MSME sector, of which three percent will be from women entrepreneurs.
- MSMEs can now sell their products on the Government eMarketplace (GeM), a one-stop-shop to facilitate online procurement of common use goods.
Major highlights and Important Question for Exams on Budget 2019:
Interim Budget 2019 tax proposals:
- Individual taxpayers with annual income up to 5 lakh rupees to get the full tax rebate.
- Individuals with gross income up to 6.5 lakh rupees will not need to pay any tax if they make investments in provident funds and prescribed equities.
- Standard tax deduction for salaried persons raised from 40,000 rupees to 50,000 rupees.
- TDS threshold on rental income raised from 1.8 lakh to 2.4 lakh rupees.
- "Around 3 crore middle-class taxpayers will get tax exemption due to this measure," the finance minister said.
- Gratuity limit increased from 10 lakh to 30 lakh rupees.
- The benefit of rollover of capital tax gains to be increased from investment in one residential house to that in two residential houses, for a taxpayer having capital gains up to 2 crore rupees; can be exercised once in a lifetime.
- Benefits under Sec 80(i)BA being extended for one more year, for all housing projects approved until the end of 2019-2020.
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